EURUSD is trading around 1.1540 making new weekly lows. The short-term bounce from 1.1560 to 1.1640 was as expected a pause to the main downtrend. When price broke below the 38% Fibonacci gave us an important bearish signal. The cancellation of the bearish divergence signals also added to the bearishness of the setup.
EURUSD is now moving lower towards our next target which is the 50% Fibonacci retracement of the entire rise. Trend remains bearish as price continues making lower lows and lower highs. There is no sign of a reversal and traders need to be cautious because trying to find the low, is like trying to catch a falling knife. Bears remain in full control of the trend and there is no sign of a possible reversal.
